ING says fiscal package brings Romania lower twin deficits at cost of growth
Romania's fiscal consolidation plan will help government achieve its deficit targets of 7.5% this year and 6.4% in 2026 from the record 8.7% of GDP in 2024 (cash terms) and will moderate the current account (CA) deficit from 8.3% of GDP in…
iulian ernst · Journalist
· Updated · 3 min read
Romania's fiscal consolidation plan will help government achieve its deficit targets of 7.5% this year and 6.4% in 2026 from the record 8.7% of GDP in 2024 (cash terms) and will moderate the current account (CA) deficit from 8.3% of GDP in 2024 to 7.5-8.0% in 2025 and 6.5-7.0% in 2026 – at the cost of meagre 0.3% GDP growth this year to strengthen at 1.7% in 2026.
The ING financial group's analysts note political and administrative implementation risks, as well as economic risks such as a sudden plunge in consumption or investments, prompting a technical recession.
